If the Japanese yen is expected to appreciate against the Philippine peso and interest rates in the Philippines and Japan are similar, banks may try speculating on this anticipated exchange rate movement by borrowing ____ and investing in ____. a. yen; yen b. yen; peso c. peso; yen d. peso; peso

Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter31: Open-Economy Macroeconomics: Basic Concepts
Section31.2: The Price For International transaction: Real And Nominal Exchange Rate
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If the Japanese yen is expected to appreciate against the Philippine peso and interest rates in the Philippines and Japan are similar, banks may try speculating on this anticipated exchange rate movement by borrowing ____ and investing in ____.

a. yen; yen

b. yen; peso

c. peso; yen

d. peso; peso

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